AIM:LEK

Stock Analysis Report

Executive Summary

Lekoil Limited explores for, develops, and produces petroleum oil and natural gas primarily in Nigeria.


Snowflake Analysis

Mediocre balance sheet with limited growth.

Share Price & News

How has Lekoil's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: LEK's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

30.0%

LEK

9.6%

GB Oil and Gas

-2.4%

GB Market


1 Year Return

-70.7%

LEK

-37.1%

GB Oil and Gas

-25.9%

GB Market

Return vs Industry: LEK underperformed the UK Oil and Gas industry which returned -36.6% over the past year.

Return vs Market: LEK underperformed the UK Market which returned -25.9% over the past year.


Shareholder returns

LEKIndustryMarket
7 Day30.0%9.6%-2.4%
30 Day-6.5%-15.9%-18.0%
90 Day-75.4%-36.5%-29.1%
1 Year-70.7%-70.7%-33.8%-37.1%-22.2%-25.9%
3 Year-89.7%-89.7%-14.3%-25.0%-16.0%-26.6%
5 Year-89.2%-89.2%1.6%-19.4%-4.5%-26.1%

Price Volatility Vs. Market

How volatile is Lekoil's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Lekoil undervalued compared to its fair value and its price relative to the market?

0.08x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate LEK's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate LEK's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: LEK is unprofitable, so we can't compare its PE Ratio to the Oil and Gas industry average.

PE vs Market: LEK is unprofitable, so we can't compare its PE Ratio to the UK market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate LEK's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: LEK is good value based on its PB Ratio (0.1x) compared to the GB Oil and Gas industry average (0.4x).


Next Steps

Future Growth

How is Lekoil forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

30.2%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if LEK's forecast earnings growth is above the savings rate (0.5%).

Earnings vs Market: Insufficient data to determine if LEK's earnings are forecast to grow faster than the UK market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: LEK's revenue (29.7% per year) is forecast to grow faster than the UK market (2.6% per year).

High Growth Revenue: LEK's revenue (29.7% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if LEK's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Lekoil performed over the past 5 years?

10.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LEK is currently unprofitable.

Growing Profit Margin: LEK is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: LEK is unprofitable, but has reduced losses over the past 5 years at a rate of 10.1% per year.

Accelerating Growth: Unable to compare LEK's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: LEK is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (47.5%).


Return on Equity

High ROE: LEK has a negative Return on Equity (-8.15%), as it is currently unprofitable.


Next Steps

Financial Health

How is Lekoil's financial position?


Financial Position Analysis

Short Term Liabilities: LEK's short term assets ($24.0M) exceed its short term liabilities ($23.8M).

Long Term Liabilities: LEK's short term assets ($24.0M) exceed its long term liabilities ($7.5M).


Debt to Equity History and Analysis

Debt Level: LEK's debt to equity ratio (8.7%) is considered satisfactory.

Reducing Debt: LEK's debt to equity ratio has increased from 0% to 8.7% over the past 5 years.


Balance Sheet

Inventory Level: LEK has a high level of physical assets or inventory.

Debt Coverage by Assets: LEK's debt is covered by short term assets (assets are 1.5x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Insufficient data to determine if LEK has enough cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if LEK has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is Lekoil's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate LEK's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate LEK's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if LEK's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if LEK's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of LEK's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.3yrs

Average management tenure


CEO

Lekan Akinyanmi (47yo)

no data

Tenure

US$1,712,000

Compensation

Mr. Olalekan Akinyanmi, also known as Lekan, serves as the Chief Executive Officer and Executive Director of Lekoil Ltd. He has over 20 years' experience in the oil and gas industry with AllianceBernstein  ...


CEO Compensation Analysis

Compensation vs Market: Lekan's total compensation ($USD0.00) is below average for companies of similar size in the UK market ($USD335.78K).

Compensation vs Earnings: Lekan's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Olalekan Akinyanmi
CEO & Executive Directorno dataUS$1.71m7.5% $903.6k
Edward During
Chief Financial Officer0.25yrno datano data
Adeleke Adedipe
Chief Operating Officer2.25yrsno datano data
Samuel Olotu
Chief Technology Officerno datano data0.056% $6.7k
Kike Fajemirokun
Head of Human Resources & Admin2.25yrsno datano data
Gloria Iroegbunam
GM of Legal & Company Secretary2.25yrsno datano data
Hamilton Esi
General Manager of Corporate Communicationsno datano datano data

2.3yrs

Average Tenure

Experienced Management: LEK's management team is considered experienced (2.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Olalekan Akinyanmi
CEO & Executive Directorno dataUS$1.71m7.5% $903.6k
Thomas Schmitt
Non-Executive Director2.58yrsUS$25.00kno data
Aisha Muhammed-Oyebode
Non-Executive Director7.17yrsUS$111.00k0.048% $5.8k
Samuel Adegboyega
Non-Executive Chairman8.92yrsUS$151.00k0.22% $26.0k
Hezekiah Oyinlola
Non-Executive Director4.83yrsUS$111.00k0.12% $14.2k
Anthony Hawkins
Non-Executive Director1.25yrsno datano data
Mark Jonathan Simmonds
Non-Executive Director0.25yrno datano data

3.7yrs

Average Tenure

55yo

Average Age

Experienced Board: LEK's board of directors are considered experienced (3.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Lekoil Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Lekoil Limited
  • Ticker: LEK
  • Exchange: AIM
  • Founded: 2010
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: UK£12.045m
  • Shares outstanding: 536.53m
  • Website: https://www.lekoil.com

Number of Employees


Location

  • Lekoil Limited
  • Churchgate Tower 1
  • 9th Floor
  • Lagos
  • Nigeria

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LEKAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPMay 2013
L5KDB (Deutsche Boerse AG)YesOrdinary SharesDEEURMay 2013
LEKO.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMay 2013

Biography

Lekoil Limited explores for, develops, and produces petroleum oil and natural gas primarily in Nigeria. The company owns a 40% interest in the Otakikpo marginal field located in the south-eastern part of the Niger Delta; and a 17.14% participating interest in the OPL 310 block situated in the Upper Cretaceous fairway that runs along the West African Transform Margin. It also holds a 62% interest in the OPL 325 located in the Dahomey Basin. The company was founded in 2010 and is headquartered in Lagos, Nigeria. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/06 23:31
End of Day Share Price2020/04/06 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.